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at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. Richard Carson/Reuters
Nidhi Verma and Timothy Gardner/Reuters
WASHINGTON/NEW DELHI
EnergiesNet.com 01 14 2022
The sources, who have knowledge of talks between the world’s top two crude consumers, said China agreed in late 2021 to release an unspecified amount of oil depending on price levels.Report ad
“China agreed to release a relatively bigger amount if oil is above $85 a barrel, and a smaller volume if oil stays near the $75 level,” said one source, without elaborating.
The release of crude stocks by China will occur around the Lunar New Year, the sources said. China will be closed for the biggest annual holiday from Jan. 31 to Feb. 6.
China’s National Food and Strategic Reserves Administration did not immediately respond to a request for comment.Report ad
The agreed release of reserves by China is the result of a series of discussions, reported by Reuters in November, that the Biden administration held with other major oil consumers after tight supplies drove global oil prices to multi-year highs. read more .
Biden and top aides discussed the possibility of a coordinated release of crude stocks with close allies including Japan, South Korea and India, as well as with China.Report ad
The United States has conducted crude swaps and sales from its reserves over the past few weeks while Japan and South Korea have also announced plans for crude sales. read more
China, which has long kept details on its state reserves a secret, conducted last September its first-ever public crude reserves auction of about 7.4 million barrels, about half a day’s consumption in the country. read more
In November, the National Food and Strategic Reserves Administration said it was “working on” a release of crude reserves, but declined to comment on the U.S. request for the coordinated release among buyers. read more
Oil prices rebounded above $80 a barrel this week buoyed by supply disruptions in Libya and Kazakhstan, a fall in U.S. crude inventories to their lowest since 2018, and an improvement in the outlook for fuel demand in Europe as governments there ease COVID-19 restrictions.
Benchmark Brent crude futures was at $84.79 a barrel and U.S. West Texas Intermediate crude at $82.23 a barrel at 0730 GMT.
Reporting by Timothy Gardner in Washington and Nidhi Verma in New Delhi; Writing by Chen Aizhu; Editing by Florence Tan and Christian Schmollinger
reuters.com 01 14 2022
